Air Terminals, Tunnel Top 2007 Port Authority Budget

Staff

The Port Authority released its 2007 preliminary 2007 budget on November 30. It increases capital expenditures by $625 million and holds operating expenses flat while continuing to increase security spending and decrease administrative costs. The Port Authority's $5.7-billion budget includes $2.3 billion for operating expenses, $2.5 billion for capital improvements, $806 million for debt service, and $69 million for other expenditures. The preliminary budget calls for capital funds to continue the redevelopment of the World Trade Center site, to build a new fleet of PATH cars, to advance the Trans Hudson Tunnel project, to upgrade Terminal B at Newark Liberty International Airport, and to construct a new passenger terminal at John F. Kennedy International Airport. Capital expenses increased by $625 million, or 33.2 percent, due primarily to work at the World Trade Center site in connection with the Freedom Tower, Memorial and common infrastructure. Of this amount, approximately $406 million will be recovered from insurance and third parties. Other major items include: a record $679 million in capital and operating spending for security at Port Authority facilities; Preliminary planning and site acquisition for THE Tunnel Project, a new trans-Hudson passenger rail tunnel; Construction of the new Terminal 5 at John F. Kennedy International Airport, and Redevelopment of Terminal B at Newark Liberty International Airport.